Governor Ivey pledges $40 million bailout for Jackson Hospital if it emerges from bankruptcy

(Jackson Hospital/Facebook)

On Tuesday, Governor Kay Ivey and the Amendment 666 Bond Commission approved the future issuance of bonds and pledged $40 million in state funding to support Jackson Hospital’s recovery from its self-inflicted bankruptcy.

Jackson Hospital — who filed for Chapter 11 bankruptcy last year — has been aggressively pursuing for alternative solutions to help keep the operations of the hospital flowing after a multitude of financial and management issues.

“For a year now, I have been engaged on the issues facing Jackson Hospital due to their previous mismanagement,” Ivey wrote.

“There is new hospital leadership in place now, which I have confidence in, and I challenged local elected leaders to come forward with their own funding commitments. I am grateful to both the City Council and County Commission for answering that call. I am also proud to commit $40 million from the state for capital expenses at Jackson Hospital. These future funds would only be issued once Jackson Hospital emerges out of bankruptcy.”

Ivey argued that losing a hospital in one of Alabama’s largest metropolitan areas would be “devastating” for Montgomery and surrounding communities. She went on to say Jackson Hospital needs to be maintained as it’s a close by option for state government, Alabama leaders in all branches, tourists and Alabamians.

“A strong capital city is necessary for a strong state, and the healthcare system here in Montgomery is certainly a critical component to that,” Ivey said. “I remain hopeful Jackson Hospital puts itself on a stronger path and is sustainable through its next 80 years and beyond.”

Grayson Everett is the editor in chief of Yellowhammer News. You can follow him on X @Grayson270.